WTI oil prices surged above $100 per barrel on Friday, vindicating our call for prices to surge above the century mark. It was a somewhat surprising surge, as there was a lack of news. The cold weather continues to generate significant heating fuel demand, and overall distillate fuel levels are so low that the US is attracting heating oil imports from Europe.… Read more
Energy OverView February 7, 2014
WTI oil prices are lagging Brent crude oil prices, once again, as the focus shifts to US refinery maintenance and a looming demand slowdown. Citgo’s Corpus Christi unit was the latest to announce a shutdown for retooling. The strong refinery run rate, during the second-half of last year, supported WTI prices as has the various pipeline rationalizations.… Read more
Energy Overview February 6, 2014
Oil prices are rallying this morning, in the aftermath of the weekly inventory report from the EIA, which showed a further decline in overall distillate fuels, which, of course, include heating fuels. Those heating fuels continue to be in terrific demand, due to the tough winter being experienced throughout the eastern half of the United States.… Read more
Energy OverView February 5, 2014
The Brent-WTI spread was the featured trade, again, yesterday, as WTI rose and Brent declined in price. The impact of the Keystone pipeline southern leg may finally be emerging. Last night, the API reported that Cushing inventories fell by over 1 million barrels, and that appears to be directly linked to the pipeline flow.… Read more
Energy OverView February 4, 2014
WTI oil prices got caught in the selling vortex that gripped the equity markets, yesterday. Softening economic data also helped pressure prices lower, including a diminished manufacturing reading out of China. One data point does not a slowdown make, but the tug of emerging markets tumult magnified the disappointing ISM manufacturing reading.… Read more
Energy OverView February 3, 2014
The ills affecting the emerging markets have spilled over into the petroleum complex. The concerns over China, in particular, quickly translate into demand concerns for the market. The bitter cold weather and the demand for heating fuels have supported the market, and the squeeze in the expiring February heating oil contract was epic.… Read more